Reorg Blog

Darby Green is VP, Product, Strategy & Innovation at Reorg, a global provider of credit intelligence, data & analytics. When it comes to legal tech, the concept of AI has gained acceptance as initial concerns about “robot lawyers” replacing skilled litigators, or strategic negotiators have largely waned over the years. Key factors in a machine learning (ML) based solution’s overall success include the diligence followed in its development and the oversight employed by the humans who build and train it. As a disclosure, my own company, Reorg, uses ML to power our suite of credit intelligence, data and analytics products which...

During a year of many economic uncertainties, it was reassuring to see the usual ‘‘summer slowdown’’ of the European high-yield and loans primary market. Activity was limited to loans with a few add-ons and amend and extends, or A&Es, as expected. At Reorg, we used the summer sluggishness as an opportunity to reflect on new developments in 2023, such as the “snooze drag” technique to facilitate A&Es in leveraged loans and the drive to enhance transparency in the realm of ESG. In our continuing 101 education series, we explained the basics of a liability management exercise, or LME, and U.S. originated “lender-on-lender violence”...

Interest rates remain a critical point of concern for global investors as distressed activity accelerates across North America, Europe and Asia. In North America, 32 debtors have filed for chapter 11 thus far in August, heavily represented by real estate names as commercial property owners wrestle with increased interest costs for floating-rate debt. While market participants are encouraged by benign consumer and producer price data, stronger-than-expected retail sales last week and Federal Reserve minutes on Wednesday highlighting “upside risks to inflation,” many now expect that a fed funds rate of over 5% will likely endure.  In the wake of the tragic Maui...

Chinese regulators take further steps to cut down payments for home buyers and encourage banks to lower interest rates on existing mortgages, according to joint statements issued by the People’s Bank of China and National Administration of Financial Regulation on Thursday, Aug. 31. The minimum down payment will be uniformly reduced to no less than 20% for first home purchases and no less than 30% for second home purchases. The lower limit of mortgage interest rate for second home purchase had been adjusted to the level of related LPR+20 bps while the lower limit of mortgage interest rate for first...

An Overview of the Sustainability-Linked Bond Market Following the issuance of the first European sustainability-linked high-yield bond by Paris-headquartered aluminum maker Constellium in 2021, the European high-yield SLB market has grown considerably. New issuance in the first half of 2023 was €4.2 billion, nearly double the €2.8 billion issued in the first half of 2022. While it is tempting to attribute this increase to a heightened awareness of sustainability among issuers and investors, it needs to be considered in the context of the growth in the size of the European high-yield bond market as a whole. Within Reorg’s coverage universe,...

Download the report here The first half of 2023 exemplified volatility in the credit market, with notable activity in the banking, real estate, and healthcare sectors, sparking an increase in restructuring advisory activity and interest. The updated Reorg Advisor League Tables for the Americas utilize primary and proprietary data from Credit Cloud to analyze activities among Legal Advisors, Financial Advisors and Investment Bankers in the first six months of 2023 in order to benchmark their workload and approved fees. Legal advisors were well able to make their mark, outpacing restructuring activity in the whole of 2022 by several metrics. Source:...